Dollar strengthens again as risk-off sentiment persists
The dollar is stronger in a movement towards safe havens amid ongoing fears of stimulus pullback and delta variant risk. Greenback outperforms peers ahead of ECB, and Bank of Canada rate decisions this week and as global investors take risk off the table as global growth outlook appears to slow.
September 8, 2021
EUR/USD 1.1812 GBP/USD 1.3755 USD/CAD 1.2674 AUD/USD 0.7372 USD/JPY 110.27 USD/CNH 6.4599 USD/ILS 3.2042 USD/MXN 19.9137 USD/CHF 0.9220 USD/INR 73.6037 USD/BRL 5.2204 USD/SGD 1.3460 USD/DKK 6.2947 USD/SEK 8.6080 USD/NOK 8.6937
Thin trading and a flight to safe havens sent the greenback to one-week highs. Pres. Biden will reveal a 6-pronged strategy to combat the latest wave of coronavirus today as 75% of US adults have received at least 1 dose of a vaccine.GBP
The pound is weaker for a third day versus both the dollar and euro. BoE Governor Andrew Bailey’s comments will be in focus today as he speaks in front of the Treasury Select Committee.EUR
The euro slid again for a third day in fix-related flows ahead of Thursday’s ECB meeting. Nearby support is the 55DMA of 1.1813. The ECB is expected to conduct a small tapering of asset purchases this week.CAD
Broad US strength sends USD/CAD higher. Markets will listen to BoC comments following the rate decision due out this morning. A reduction in asset purchases is expected by end of year.ASIA/PACIFIC
USD/JPY pulled back slightly amid yen buying and in a flight to havens. Asian markets are concerned about economic impacts of the delta variant and possible future lock-downs.
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